There is no hard and fast rule when it comes to determining how much it will cost an individual to start a business. The size and capacity of the business you intend starting is what will determine the size of your budget. We have decided to start On The Track® Mobile Food Company with just one truck with the hope of growing it to fleets of truck few years down the line.

So, our budget is based on starting small but with class. As such, here is a picture of the areas we will spend our start – up capital;

Our Startup Budget and Expenditure

The Fee for Registering the Business: $725.

The budget for insurance, permits and license: $10,000

The Amount needed to rent an office facility with store and parking for 6 months in Inglewood, Los Angeles: $50,000.

The Cost for the purchase of the purchase of a brand new retrofitted food truck with all the required gadget (oven, rotisserie, coffee pots, grill, hot – dog roller and refrigerator): $120,000.

The Cost for kitchen utensils, and pots et al: $15,000

The Cost for supply of raw foods, ingredients, drinks and beverages for a month: $5,000

The total cost we are likely going to spend from start to when the business is fully operational is estimated to be at about $250,000 (please note that the payment for the brand new retrofitted food truck is spread over a period of 48 months).

A Sample Food Truck Business Plan Financial Projection and Forecast

Businesses that do pretty well are businesses that have more than one source where they generate revenue. It is risky to run a business where you can only generate income from just one source. The truth is that if anything goes wrong with the source of income, the business might likely collapse.

This is why we worked hard to provide you with a sample food truck marketing plan template to help you through the process. The big picture we have for On The Go® Mobile Food Company is to generate income from the following sources;

Sources of Income

Sales of launch (meals)

Sales of Snacks

Offering training services

Offering consultancy services in line with our business goal

Sales of drinks

Sales of our franchise

Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also assumptions. This is for sales projections based on what we saw.

Lunch:

1000 lunches per day (on average), 12 months per year

$20 per person on the average

Snacks:

1500 snacks per day, 12 months per year

$5 per person on the average

Sales of Drinks and Water et al:

On the average over 80% of people who purchase lunch (meal) and snacks would normally consume drinks as well.

$1.5 for a bottle of coke

This equates to 2000 drinks in a day when you multiply 2000 by 1.5 we will make an estimate of $3000 daily from the sale of drinks alone.

N.B: The possibility of the figure to increase or even reduce cannot be ruled out. Since most of the figures quoted above are partly based on the report from our market survey and feasibility studies and partly on assumptions.